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Project Team Rewards
Appendix IV: Herzberg’s Two-Factor Theory
Herzberg’s theory proposes that for employees’ (dis)satisfaction, different factors are
responsible for that employees’ motivation. So-called ‘hygiene factors’ causes
(dis)satisfaction if they are (un)fulfilled (see above picture for a list). However, as soon as
a certain level of fulfilment is reached, a further increase will not further motivate
employees. The motivation factors may cause a high motivation but even if they are not
fulfilled, they will not cause dissatisfaction. In other words, employees can be either
dissatisfied and not motivated or dissatisfied and motivated or satisfied but not motivated
or satisfied and motivated. Rewards, in particular money, are only responsible for the level
of satisfaction and hence cannot motivate.
Picture adopted from Herzberg (2003)
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